Rex Energy has entered into a joint venture agreement with an affiliate of ArcLight Capital Partners, LLC (“ArcLight”) to jointly develop 32 specifically designated wells in the company’s Butler Operated Area. ArcLight will participate and fund 35% of the well costs in the designated wells. The joint venture agreement is expected to reduce the company’s 2015 capital expenditure program by $60 million to $135 – $145 million, or a decrease of 30% at the midpoint of guidance. Total consideration for the transaction will equal $67 million, with $16.6 million received at closing. Upon achieving certain threshold triggers of IRR and ROI on specific well groups, ArcLight’s working interest will revert to 17.5%. In addition, ArcLight will have the option to participate as a 20% working interest partner in 17 additional Moraine East wells in 2016.

“This joint venture is consistent with our 2015 strategy to further HBP our liquids-rich prospects in the Butler Operated Area, specifically in the Moraine East Area,” said Tom Stabley, Rex Energy’s Chief Executive Officer. “This new relationship provides greater flexibility for Rex to manage its capital program, while continuing to increase production and reserves. We continue to evaluate solutions that will further enhance our ability to develop the Butler Operated Area.”

Borrowing Base

Rex Energy’s bank group has unanimously approved an amendment to the company’s senior secured credit facility. The approved amendment includes a new senior secured debt to EBITDAX covenant of 3.0x and permanently removes the total debt to trailing twelve months EBITDAX covenant. In addition, as part of the semi-annual borrowing base redetermination, the banks have unanimously approved a $350 million borrowing base.

“I would like to thank the bank group for our strong relationship, and for their continued support of Rex Energy’s strategy,” said Tom Stabley, Chief Executive Officer of Rex Energy.

Production and Operating Capital Expenditure Guidance

Rex Energy is providing an update for its first quarter 2015 production, full year 2015 production and operating capital expenditure guidance, which takes into account the new joint venture agreement in the Butler Operated Area. The company expects first quarter 2015 production volumes to be at the midpoint of its previously announced guidance of 190 — 196 MMcfe/d. Full year 2015 production volumes are expected to range from 185 MMcfe/d — 195 MMcfe/d, representing a 23% increase at the midpoint of guidance as compared to 2014 production volumes. In addition, the company expects 2015 operating capital expenditures to be in the range of $135 — $145 million, a 30% decrease at the midpoint of the updated 2015 operating capital expenditure guidance as compared to the midpoint of the previous operating capital expenditure program of $180 — $220 million.

About Rex Energy Corporation

Rex Energy is headquartered in State College, Pennsylvania and is an independent oil and gas exploration and production company operating in the Appalachian and Illinois Basins within the United States. The company’s strategy is to pursue its higher potential exploration drilling prospects while acquiring oil and natural gas properties complementary to its portfolio.

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